Page:United States Statutes at Large Volume 95.djvu/258

 95 STAT. 232

PUBLIC LAW 97-34—AUG. 13, 1981 property if, on the date the property was placed in service, the taxpayer had not been at risk with respect to the amount he ceased to be at risk to. "(2) CERTAIN TRANSFERS NOT TREATED AS CEASING TO BE AT

Ante, p. 229.

RISK.—If, after the 12-month period after the date on which a taxpayer borrows an amount from a quaUfied person (within the meaning of section 48(c)(8)(D)) with respect to which such taxpayer is considered at risk under section 48(c)(8)(B), the quahfied person transfers or agrees to transfer any evidence of such indebtedness to a person who is not a quaUfied person, then, for purposes of paragraph (1), the taxpayer shall not be treated as ceasing to be at risk with respect to such amount. "(3) SPECIAL RULES FOR CERTAIN ENERGY PROPERTY.—

"(A) IN GENERAL.—In the case of the second taxable year following the taxable year in which any qualified energy property (within the meaning of section 46(c)(8)(E)) is placed in service by the taxpayer and any succeeding taxable year, the taxpayer, for purposes of paragraph (1), shall be treated as ceasing to be at risk with respect to such property for such taxable year in an amount equal to the credit recapture amount (if any). "(B) CREDIT RECAPTURE AMOUNT.—For purposes of this paragraph, the term 'credit recapture amount' means an amount equal to the excess (if any) of— "(i) the total amount of principal to be paid as of the close of any taxable year under a nonrecourse level payment loan (as defined in section 46(c)(8)(F)(iv) other than a loan described in section 46(c)(8)(B)(ii)) with respect to such property, over ' (ii) the sum of— "(I) the amount of principal actually paid as of the close of such taxable year, plus "(II) the sum of the credit recapture amounts with respect to such property for all preceding taxable years. "(C)

Ante, p. 203.

SPECIAL RULES FOR DETERMINING PRINCIPAL TO BE

PAID.—For purposes of subparagraph (B)(i), in determining the amount of the principal to be paid under a level payment loan, such determination shall be made as if such loan was to be fully repaid by the end of a period equal to the earlier of— "(i) the present class life (as defined in section 168(g)(2)) of the property or, if the property has no present clsiss life, a similar period determined by the Secretary, or "(ii) the period at the end of which full repayment is to occur under the terms of the loan. "(D)

SPECIAL RULE FOR CERTAIN CUMULATIVE DEFICIEN-

CIES.—If the excess of— "(i) the amount of the total scheduled principal payments under a loan described in subparagraph (B)(i) as of the close of the taxable year, over "(ii) the total principal actually paid under such loan as of the close of such taxable year, is equal to or greater than the amount of such total scheduled payments for the 5-taxable year period ending with such taxable year, then, notwithstanding subparagraph (B), the credit recapture amount for such taxable year shall be equal to the principal remaining to be paid as of the close of

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